Romania has made progress in recent years, but the dispute between the prime minister and the president may hinder achieving political stability, according to Marsh’s 2015 Political Risk Map which offers our country a score of 62,7 points out of 100, with less than 49 points indicating political instability.
“Thus, taking into account the elections and the component related to the efficient adoption of the legislation, Romania gets 62,7 points on a scale of 0 to 100, where a value below 49 means political instability. In the region, Moldova, Ukraine and Serbia are considered to have high political risk, with scores below 49 points, while Bulgaria is placed in the category of countries ranking between 50 and 59 points,” reads a release of Marsh, a global leader in insurance broking and risk management.
According to the 2015 Political Risk Map quoted by Mediafax, the safest bets in Europe, with a score of almost 100 points are Norway, Sweden, Switzerland and Denmark.
Rising geopolitical tensions, political violence and separatist movements combined with falling commodity prices are exacerbating political risks at global level and further highlighting challenges for direct foreign investors.
Drawing on data from Business Monitor International (BMI), a Fitch Group Company and leading source of independent political and credit risk analysis, Marsh’s 2015 Political Risk Map includes overall risk scores for 170 countries based on three categories: political risk, macroeconomic risk, and operational risk.
Romania’s economy will be one of the fastest growing in CEE in the coming years, and household expenses are starting to be on the mend, while the government will spend more in order to support the economic growth, also reads the document.
“Due to the slowdown in exports, the economy will turn to an internal model. Thus, further actions in order to eliminate corruption will be required , and also to improve the absorption of EU funds and to diversify the type of products exported in order for the country to return to the growth before the crisis. Romania has a score of 59,2 for short-term economic risk,” the release shows.
On the scale of operational risk, Romania obtained a score of 58,8, ranking the 50th place.